We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Alliant Energy Benefits From Investments & Renewable Expansion
Read MoreHide Full Article
Key Takeaways
LNT plans to invest $11.5B from 2025-2028 to expand clean energy and modernize its grid.
More than 40% of LNT's new capex plan is focused on wind, solar, and energy storage assets.
LNT's growing customer base and favorable regulation support long-term earnings potential.
Alliant Energy Corporation (LNT - Free Report) continues to benefit from investments on renewable energy and infrastructure upgrades. These initiatives help it to serve an expanding customer base effectively. Alliant Energy seeks to obtain adequate and timely rate relief to recover costs and maintain profitability.
However, this Zacks Rank #3 (Hold) company has to face risks related to its dependence on third-party assets for transmission activity.
Factors Acting in Favor of LNT
Alliant Energy’s earnings prospects look attractive due to ongoing additions to electric and natural gas customer volumes. Its geographic location and favorable regulatory developments bode well for the development of wind projects and long-term earnings growth.
The ongoing economic development in its service territories and increasing customer base are also creating fresh demand for utility services and boosting its performance.
Alliant Energy plans to invest substantially over the next four years to strengthen the electric and gas distribution network as well as add natural gas and renewable assets to the generation portfolio. The company raised its long-term capital expenditure guidance by 26% to $11.5 billion during 2025-2028.
Its strong and flexible investment plans will support an 11% rate-base CAGR during the same period. More than 40% of Alliant Energy’s 2025 to 2028 capital expenditure plan includes investments in wind, solar and energy storage. These investments result in Alliant Energy having one of the cleanest generation assets in the country.
Challenges Faced by LNT
The company’s utility operations — IPL and WPL — use the interstate electric transmission system that they do not own or control. A fall in the performance of the third-party electric transmission system should limit Alliant Energy’s ability to transmit electricity within its service territories and adversely impact its operations.
Increased competition from self-generation by large industrial customers, customer and third-party-owned generation (e.g., solar panels) and alternative energy sources can lower demand for its services in Iowa and Wisconsin.
LNT Stock’s Price Performance
In the past month, shares of the company have risen 1.8% compared with the industry’s 1.3% growth.
CNP’s long-term (three to five years) earnings growth rate is 7.76%. The Zacks Consensus Estimate for 2025 earnings per share (EPS) is pinned at $1.75, indicating a year-over-year increase of 8%.
EVRG’s long-term earnings growth rate is 5.7%. The Zacks Consensus Estimate for 2025 EPS is pinned at $4.03, implying year-over-year growth of 5.8%.
DTE Energy’s long-term earnings growth rate is 7.64%. The Zacks Consensus Estimate for 2025 EPS is pinned at $7.24, suggesting a year-over-year improvement of 6%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Alliant Energy Benefits From Investments & Renewable Expansion
Key Takeaways
Alliant Energy Corporation (LNT - Free Report) continues to benefit from investments on renewable energy and infrastructure upgrades. These initiatives help it to serve an expanding customer base effectively. Alliant Energy seeks to obtain adequate and timely rate relief to recover costs and maintain profitability.
However, this Zacks Rank #3 (Hold) company has to face risks related to its dependence on third-party assets for transmission activity.
Factors Acting in Favor of LNT
Alliant Energy’s earnings prospects look attractive due to ongoing additions to electric and natural gas customer volumes. Its geographic location and favorable regulatory developments bode well for the development of wind projects and long-term earnings growth.
The ongoing economic development in its service territories and increasing customer base are also creating fresh demand for utility services and boosting its performance.
Alliant Energy plans to invest substantially over the next four years to strengthen the electric and gas distribution network as well as add natural gas and renewable assets to the generation portfolio. The company raised its long-term capital expenditure guidance by 26% to $11.5 billion during 2025-2028.
Its strong and flexible investment plans will support an 11% rate-base CAGR during the same period. More than 40% of Alliant Energy’s 2025 to 2028 capital expenditure plan includes investments in wind, solar and energy storage. These investments result in Alliant Energy having one of the cleanest generation assets in the country.
Challenges Faced by LNT
The company’s utility operations — IPL and WPL — use the interstate electric transmission system that they do not own or control. A fall in the performance of the third-party electric transmission system should limit Alliant Energy’s ability to transmit electricity within its service territories and adversely impact its operations.
Increased competition from self-generation by large industrial customers, customer and third-party-owned generation (e.g., solar panels) and alternative energy sources can lower demand for its services in Iowa and Wisconsin.
LNT Stock’s Price Performance
In the past month, shares of the company have risen 1.8% compared with the industry’s 1.3% growth.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the same industry are CenterPoint Energy (CNP - Free Report) , Evergy (EVRG - Free Report) and DTE Energy (DTE - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CNP’s long-term (three to five years) earnings growth rate is 7.76%. The Zacks Consensus Estimate for 2025 earnings per share (EPS) is pinned at $1.75, indicating a year-over-year increase of 8%.
EVRG’s long-term earnings growth rate is 5.7%. The Zacks Consensus Estimate for 2025 EPS is pinned at $4.03, implying year-over-year growth of 5.8%.
DTE Energy’s long-term earnings growth rate is 7.64%. The Zacks Consensus Estimate for 2025 EPS is pinned at $7.24, suggesting a year-over-year improvement of 6%.